HMRC’s Termination of UK GAAP and UK IFRS Taxonomies and Adoption of New Ones
HMRC has mandated Financial Statements attached to CT600 in iXBRL format since 2011. Since then, they have accepted UK GAAP and UK IFRS as the two accounting standards and appropriate taxonomies have been accordingly accepted. With the introduction of the New Financial Reporting Standards (New FRS), the following additional taxonomies have been approved by HMRC:
- FRS 101
- FRS 102
- EU Adopted IFRS
At some point, it was expected that HMRC would stop recognising old taxonomies. That time is now.
HMRC’s Termination of UK GAAP and UK IFRS Taxonomies
This notification was initially published in February 2016 and reconfirmed again in July 2016. According to HMRC’s notification, starting 1st October 2016, all accounting periods that start on 1st January 2016 or later will not be able to use the following old taxonomies in their CT600 submission:
- UK GAAP
- UK IFRS
- UK GAAP Charities extension
- UK IFRS Banking extension
- Detailed Profit and Loss taxonomy based on UK GAAP or UK IFRS
It is to be noted that the new taxonomies do not have the “Minimum Tagging List” that was available with old taxonomies. This means there will be ONLY “Full List” Taxonomies in future and the minimum list will disappear eventually. The minimum list was introduced by HMRC in 2011 in order to ease the burden of filing, by accepting a minimum set of tags from the entire taxonomy.
As a leading managed tagging service provider in the UK market, DataTracks is geared up to tackle the new regulations, having amended our software with the latest taxonomies and trained our Accountants on the new accounting standards. Such changes made by HMRC should not trigger any concerns in our customers who migrate to new FRS taxonomies, as we have been handling full list tagging for several years. In fact, we encourage tax filers who use tagging software to switch to our managed tagging service since the auto-tagging software poses challenges while applying changes to taxonomy. Several Accountants have shared their experience of how they spend additional time by tagging the portions of the document which the software did not tag appropriately. Engaging DataTracks assure timeliness and accuracy as your managed tagging service partner.
About DataTracks: DTracks Limited is a subsidiary of DataTracks Services Limited. With more than 10 years track record, DataTracks is a global leader in preparation of financial statements in XBRL and iXBRL formats for filing with regulators. DataTracks prepares more than 12,000 XBRL statements annually for filing with regulators such as SEC in the United States, HMRC in the United Kingdom, Revenue in Ireland, ACRA in Singapore and MCA in India.
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